Change Management Failures

1228 Words May 22nd, 2011 5 Pages
Change Management Failures

The case for change management:
Costs and risks of poorly managing change

In Prosci’s 2007 and 2009 benchmarking studies, the top trend identified by study participants was a greater recognition of the need for and value of change management. While some find themselves in a situation where change management is being requested, many other practitioners are still working diligently to make a compelling case for the need for change management. For these practitioners, Prosci is releasing a five part series on the case for change management. Learn how to effectively “sell” change management to project leaders and executives in your organization by directly connecting change management to project and
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Organizational level impacts

The organizational level is a step above the project level impacts. These costs and risks are felt not only by the project team, but by the organization as a whole. Many of these impacts extend well beyond the lifecycle of a given project. When valuable employees leave the organization, the costs are severe and in some cases we can never recover fully. A legacy of failed change presents a significant and ever-present backdrop that all future changes will encounter.
The organizational costs and risks of poorly managing change include:

Costs:

• Productivity plunges (deep and sustained) • Loss of valued employees • Reduced quality of work

Risks:

• Impact on customers • Impact on suppliers • Morale declines • Legacy of failed change • Stress, confusion, fatigue • Change saturation
Applying change management effectively on a particular project or initiative allows you to avoid organizational costs and risks which last well beyond the life of the project.

A third dimension of costs and risks

There is one final dimension of costs and risks to consider, beyond the project and organizational impacts. When we try to introduce a change without using effective change management, we are much less likely to implement the change and fully realize the expected results and outcomes. This final dimension
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